coinfomania.com
The US House Republicans on Thursday introduced a 200-page bill aimed at fostering digital asset regulatory clarity. The proposal, titled Financial Innovation and Technology for the 21st Century Act, would mandate regulators in America to define terms like blockchain and digital assets.
According to the bill, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would map out clear, written laws on what digital assets are and how crypto exchanges should handle them. The bill also prohibits the regulators from bending or creating new rules on how individuals hold crypto assets independently.
New Rules for Issuers
The bill contains new rules for digital asset issuers, which the SEC would oversee. Among the new regulations is that an issuer would not sell more than 10% of its token to only one buyer. To further make this possible, issuers are mandated not to allow investors to buy assets higher than 5% of their annual income or net worth.
The bill also prohibits mixing customer assets to foster investor funds protection. Funds commingling was part of what defunct exchange FTX was accused of in one of the accusations against it.
The Much-Needed Regulation
Digital asset regulation in the US has become a shamble recently, as regulators have allegedly imposed unclear rules on crypto firms. The impact has been massive, driving institutions from investing in digital assets in the country and taking the innovation to places with much milder, friendlier regulatory frameworks like Hong Kong, Singapore, and the UK.
With key individuals and institutions continually pushing for a clearer regulatory framework, the US House Republicans seem to have resolved to put the chaos to an end. The House Committee on Agriculture and Financial Services will vote on whether to push the bill to the House of Representatives next week. If the bill manages to get there, it will need good backing from Democrats, who control the Senate and the White House.
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